The Tindari Fault System (southern Tyrrhenian Sea, Italy) is a regional zone of brittle deformation located at the transition between ongoing contractional and extensional crustal compartments and lying above the western edge of a narrow subducting slab. Onshore structural data, an offshore seismic reflection profile, and earthquake data are analyzed to constrain the present geometry of the Tindari Fault System and its tectonic evolution since Neogene, including the present seismicity. Results show that this zone of deformation consists of a broad NNW trending system of faults including sets of right-lateral, left-lateral, and extensional faults as well as early strike-slip faults reworked under late extension. Earthquakes and other neotectonic data provide evidence that the Tindari Fault System is still active in the central and northern sectors and mostly accommodates extensional or right-lateral transtensional displacements on a diffuse array of faults. From these data, a multiphase tectonic history is inferred, including an early phase as a right-lateral strike-slip fault and a late extensional reworking under the influence of the subduction-related processes, which have led to the formation of the Tyrrhenian back-arc basin. Within the present, regional, geodynamic context, the Tindari Fault System is interpreted as an ongoing accommodation zone between the adjacent contractional and extensional crustal compartments, these tectonic compartments relating to the complex processes of plate convergence occurring in the region. The Tindari Fault System might also be included in an incipient, oblique-extensional, transfer zone linking the ongoing contractional belts in the Calabrian-Ionian and southern Tyrrhenian compartments.